Wayve is preparing to launch passenger service in Tokyo through a partnership with Nihon Kotsu and GO, marking Japan's first public autonomous taxi offering. The company's expansion comes as venture capital increasingly backs what investors call "physical AI" companies, a category that includes autonomous vehicle technology designed to operate reliably in the real world .

What Is Wayve's Role in Japan's Autonomous Vehicle Market?

Wayve has confirmed it is preparing to launch passenger service in Tokyo through a partnership with Nihon Kotsu and GO, with Wayve Driver testing already underway in the city since April 2025 . No launch date has been set as of press time, but the service would represent Japan's first public autonomous taxi offering. This positions Wayve as a significant player in a market where the government is actively promoting automation to address structural labor shortages and demographic challenges.

The company is also showcasing its capabilities at industry events. Wayve demo rides are available exclusively at Ride AI 2026 on April 15th, where attendees can experience the technology in one of the toughest urban environments available . This emphasis on real-world testing in complex conditions reflects confidence in the company's approach to autonomous driving.

Why Are Venture Capitalists Betting Heavily on Physical AI Companies Like Wayve?

Eclipse, a Palo Alto-based venture capital firm, just raised $1.3 billion in fresh capital specifically to invest in and build "physical AI" startups, with Wayve listed among its portfolio companies . The fund is split between a $591 million early-stage incubation fund and one oriented toward growth startups. This substantial investment signals that the venture capital community sees autonomous vehicle technology as a core component of the next major technological era.

According to Eclipse partner Jiten Behl, the firm is zeroing in on a fundamental shift in how technology will develop. "Over the last two decades, we've seen multiple waves of innovation," Behl explained. "This is the first time where stuff is going to move from our screens into the physical world; we're going to see advanced levels of intelligence, along with actual actions, in terms of solving problems in the real, physical world."

"Over the last two decades, we've seen multiple waves of innovation. This is the first time where stuff is going to move from our screens into the physical world; we're going to see advanced levels of intelligence, along with actual actions, in terms of solving problems in the real, physical world," said Jiten Behl.

Jiten Behl, Partner at Eclipse

Eclipse's investment strategy extends beyond simply backing individual companies. The firm is building what it calls a "web" or ecosystem of startups in overlapping fields that will likely become partners as they scale . This approach means Wayve could eventually work with other Eclipse portfolio companies in transportation, energy, infrastructure, and other sectors, creating a broader network of physical AI applications.

How Does Wayve Fit Into Eclipse's Broader Physical AI Strategy?

Eclipse's portfolio reveals the firm's focus on companies operating in the physical world. Beyond Wayve, the firm has invested in electric boat developer Arc, battery recycling firm Redwood Materials, self-driving construction vehicle startup Bedrock Robotics, and industrial robotics lab Mind Robotics . This diverse portfolio suggests that Eclipse sees autonomous vehicle technology as one piece of a larger transformation where AI moves from digital systems into physical systems that solve real-world problems.

The venture capital firm is also planning to build companies from scratch using its new fund. While Eclipse partner Jiten Behl declined to provide extensive details, he confirmed that this process has already started, noting that the firm is "definitely working on a couple of really cool ideas" . The firm is particularly interested in startups that work across enterprises and can connect different sectors to build scale and use data across industries to train smarter AI models.

Steps to Understanding Wayve's Market Position in Autonomous Driving

• Geographic Expansion: Wayve is moving from testing into commercial operations, with confirmed launches in Tokyo and demonstrations in major cities, establishing real-world proof points that attract customers and further investment.
• Venture Capital Momentum: Eclipse's $1.3 billion physical AI fund explicitly backs Wayve alongside other robotics and autonomous companies, signaling institutional confidence and providing substantial resources for scaling operations globally.
• Ecosystem Integration: Eclipse's strategy involves building a network of complementary companies that can partner with each other, potentially positioning Wayve as a core technology provider within a broader physical AI ecosystem across multiple industries.
• Real-World Testing Focus: Wayve emphasizes demonstrations in challenging urban environments rather than controlled settings, underscoring the company's confidence in its technology and commitment to proving reliability in complex conditions.

Japan represents a particularly strategic market for Wayve's expansion. The country faces significant demographic pressures, with the population declining for a 14th straight year in 2024 and those of working age making up just 59.6 percent of the total population . This labor shortage is driving adoption of autonomous systems across factories, warehouses, and critical infrastructure. Japan's Ministry of Economy, Trade and Industry stated in March 2026 that it aims to build a domestic physical AI sector and capture a 30 percent share of the global market by 2040 .

The country already holds a strong position in industrial robotics, with Japanese manufacturers accounting for about 70 percent of the global market in 2022, according to the ministry . This existing expertise in robotics and automation creates a favorable environment for companies like Wayve to establish operations and demonstrate their technology.

Wayve's Tokyo launch will serve as a crucial test of whether its autonomous vehicle approach can scale in one of the world's most demanding urban environments. Success in Japan could validate the company's technology and approach, potentially opening doors for expansion in other markets facing similar labor shortages and demographic challenges. The company's backing by Eclipse and its focus on real-world deployment position it as a serious contender in an industry that has seen numerous overpromises and delays in recent years.